Euro Technical Outlook

We wrote yesterday that “coming under 1.5612 would suggest that a top is in place.” The EURUSD has dropped through this level (and quickly), therefore we are looking for short opportunities.

The spike to 1.5904 appears to have completed the entire rally from 1.4438. We view the decline from there as the start of a larger 4th wave that should bring price back to 1.4650 (midpoint of the triangle that the EURUSD broke from). Under this count, the decline from 1.5784 is wave iii of 3 of A.